The contract is for a fixed period of nine years with an option for ONGC to extend for another seven years on a yearly basis at an aggregate contract value of approximately $655m.
The contract will be operated by Shapoorji Pallonji Bumi Armada Godavari (SPBAG), a joint venture of Bumi Armada, for ONGC’s offshore field located on the east coast of Kakinada, India.
SPBAG is a 30:70 joint venture between Malaysia’s Bumi Armada and Shapoorji Pallonji Oil & Gas of India.
Kuala Lumpur-listed Bumi Armada said the contract is “expected to contribute postitively to the future earnings of Bumi Armada Group.”
Read more: Bumi Armada refinances debt, plans asset disposals
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.